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CHEVRON COMMITS OIL FROM ITS KAZAKH FIELDS TO NEW PIPELINE PLANNED BY OMAN-KAZAKHSTAN CONSORTIUM; CONSIDERS JOINING VENTURE AS A PARTNER

 CHEVRON COMMITS OIL FROM ITS KAZAKH FIELDS TO NEW PIPELINE PLANNED BY OMAN-KAZAKHSTAN CONSORTIUM; CONSIDERS JOINING VENTURE AS A PARTNER
 MUSCAT, Oman, June 22 /PRNewswire/ -- Chevron, the U.S. oil company, has signed a memorandum of understanding to join the joint venture pipeline consortium that would transport oil from Kazakhstan to international markets, it was announced here today.
 The agreement signed here by Chevron also outlines the company's "desire to obtain priority access" to the pipeline for all crude oil that it plans to produce in the Tengiz and Korolev fields of Kazakhstan, where it entered a joint venture development and production sharing agreement with the newly-independent state last month.
 Announcing the agreement, Oman's Ministry of Petroleum and Minerals said Chevron's support of the pipeline joint venture "has established a very high level of immediate credibility for the proposed pipeline."
 The memorandum of understanding was signed for Chevron by Richard H. Matzke, President of Chevron Overseas Petroleum Inc.
 Eight Potential Pipeline Routes
 Last Wednesday in Muscat, the Sultanate of Oman and the Republic of Kazakhstan signed a joint venture agreement to form a consortium that will build a pipeline along one of eight potential routes to a terminal on either the Black Sea, the Mediterranean or the Gulf. In addition to transporting oil from landlocked Kazakhstan to international markets, the pipeline could also serve other parties outside of Kazakhstan and also transport petroleum to refineries or other processing facilities along the route or at the terminal site. Oman and Kazakhstan each hold 50 percent ownership in the consortium, which can be modified as additional members are admitted.
 The cost of the pipeline was estimated by an Omani official as being between US$700 million and $1.6 billion depending upon the route that is chosen. Final selection will depend on detailed engineering studies and negotiations with right-of-way owners.
 The countries that the pipeline may cross include Russia, Azerbaijan, Georgia, Turkmenistan, Iran and Turkey.
 Oman, which is seeking overseas investments in the petroleum industry, has become involved actively in efforts to develop Kazakhstan's oil and gas resources. "This foreign investment strategy allows us to leverage our experience in a business we know well," according to His Excellency Qais Bin Abdul Munim Al Zawawi, Deputy Prime Minister for Financial and Economic Affairs. A further manifestation of this strategy is the agreement announced by Oman and Kazakhstan, announced last Thursday, to explore, develop and produce oil and gas in the former Soviet Republic, which achieved its independence last December.
 The development of the pipeline and exploration, development and production of the Kazakhstan concession areas will be carried out by OOC Ltd., which is owned by Oman's Ministry of Petroleum and Minerals and is the vehicle for making investments in oil ventures outside Oman.
 -0- 6/22/92
 /NOTE TO EDITOR: Hill and Knowlton, Inc., has circulated this material as the international communications counsel for the principal noted above. Hill and Knowlton, Inc. is registered pursuant to 22 U.S.C. 612 with the Department of Justice, where its registration statement and this material are available for inspection. Registration does not indicate approval of this material by the U.S. Government.
 CONTACT: Paul Whitelaw (New York) of Hill and Knowlton, Inc., 212-697-5600 or 212-210-8320 (direct line), for OOC Ltd./ CO: OOC Ltd. ST: IN: OIL SU:


SB -- NY017 -- 2264 06/22/92 09:42 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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